Insider Trading

Categories: Business & Finance
  • Insider trading is the purchase or sale of publicly traded securities based on information not accessible to the public. Now considered illegal in many countries, insider trading allows practitioners to use their fiduciary relationship with an organization or individual in order to gain an advantage over public traders.
  • SEC Examples of Insider Trading

    1. Corporate officers, directors, and employees who traded the corporation's securities after learning of significant, confidential corporate developmentsSEC: Insider Trading
    2. Friends, business associates, family members, and other "tippees" of such officers, directors, and employees, who traded the securities after receiving such informationSEC: Insider Trading
    3. Employees of law, banking, brokerage and printing firms who were given such information to provide services to the corporation whose securities they tradedSEC: Insider Trading
    4. Government employees who learned of such information because of their employment by the governmentSEC: Insider Trading
    5. Other persons who misappropriated, and took advantage of, confidential information from their employersSEC: Insider Trading

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